Market Overview:
The Global Tonic Water Market size is expected to grow from USD 875.50 million in 2022 to USD 1573.09 million by 2030, at a CAGR of 7.6 % during the forecast period (2023-2030).
Tonic water is a carbonated soft drink that contains quinine. Tonic water, which was once used as malaria preventative, now has a much-reduced quinine level and is eaten for its unique bitter flavor, though it is commonly sweetened nowadays. It's popular in mixed cocktails, especially gin and tonics. Medicinal quinine was suggested to British officials and troops in early nineteenth-century India and other tropical areas of the British Empire, where it was blended with soda and sugar to conceal its bitter taste, creating tonic water.
Top Key Players in Tonic Water Market:
The Coca-Cola Company, Nestlé, Nexba, Zevia, Lamb & Watt Tonics, White Rock Products Corporation, Keurig Dr. Pepper Inc, London Essence Company, Monster Beverage Corporation, Hansen Beverage, BOYLAN BOTTLING, Fentimans, El Guapo Bitters, Franklin & Sons Ltd., Whole Foods Market IP. L.P., Thomas Henry GmbH & Co. KG, East Imperial., Arctic Blue Beverages, A.S. Watson Group, Bradleys Tonic Co, Q Mixers, and other major players.
Market Dynamics and Factors for Tonic Water Market:
Drivers:
Rising Consumer Interest in Non-Alcoholic Drinks
The market's continuous increase in interest in directly consuming tonic water is a vital driver. This increase in consumption is due to several causes, including rising consumer interest in non-alcoholic drinks that aren't excessively sweet and may mimic the sensation of consuming alcoholic beverages. Tonic water best matches this hypothesis, and as a result, it has been growing in popularity in recent years. The development of the market beyond conventional or customary tonic water is another important component in the tonic water business. Tonic water products that are more varied in flavor, texture, cost, ingredients, calorie content, and packaging have been introduced by several firms.
Opportunities:
Introduction of Tonic Water in Different Variants
The convergence of tonic water with alcohol has ignited a remarkable surge in its consumption, unlocking novel prospects for the industry. Concurrently, the market is embracing innovative products infused with diverse flavors and packaged attractively, further augmenting growth opportunities. This dual trend of alcohol blending and enticing offerings has created a fertile ground for expansion, promising increased market share and profitability for the tonic water sector.
Segmentation Analysis of the Tonic Water Market:
By Product Type, the flavored type segment is expected to register the highest tonic water market revenue over the estimated period. Premium spirits have established a solid following among consumers, who are ready to pay more for unique, inventive goods.
By Packaging Type, the bottles segment is anticipated to register the largest tonic water market revenue during the forecast period. When it comes to food and beverage packaging, there's no need to be concerned about flavors fading in a bottle. It is the most common and conventional method. Bottles come in a variety of sizes and materials.
Regional Analysis of the Tonic Water Market:
North America accounted for a major market share in the tonic water market and is expected to lead the market during the forecast period. Tonic water is primarily imported from North America. Gin's rising popularity and demand are projected to improve tonic mix adoption in the coming years. Tonic water is commonly used in alcoholic drinks in industrialized nations. Due to a lack of understanding of the product and a lower taste for gin in emerging nations, the market is still in its infancy. The United States and Canada are the leading users of tonic water, creating a substantial market opportunity in North America.
Key Industry Development:
In October 2021, Award-winning Finnish beverage company Arctic Blue Beverages, of artisan gin launched new tonic water. Arctic Blue Tonic combines flavors from coniferous forests with the global cleanest water. It is manufactured from the cleanest Finnish groundwater by hand in small batches in Lappeenranta, Finland.
In August 2021, Nexba, an Australian soft drinks firm, launched Nexba Sugar-Free Tonic Water, a new addition to its existing soft drinks line. Nexba Sugar-Free Tonic Water comes in different flavors such as Lime, Cucumber, and Mint, as well as Classic Tonic. The Natural Sweetener Blend and a blend of natural herbs are used to generate both flavors.
